The Influence of Corporate Governance Attributes on Financial Performance of Nigerian Listed Manufacturing Companies

Abstract

This research examines the impact of corporate governance attributes on the financial performance of listed manufacturing companies in Nigeria. The research employed secondary data from 32 selected manufacturing companies in Nigeria for a period of 1 year (2018). The study employed multiple regression analysis to answer the research question and to test the study’s hypotheses. The result from the study indicated that board diversity and board independence has significant positive relationship with financial performance, while board size and board meetings do not indicate significant relationship with financial performance. Accordingly, the study recommended that, board members of listed manufacturing companies in Nigeria should be reduced to a maximum of thirteen members in order to avoid possibility of members taking longer time to make decision. Also, companies should work towards reinforcing their corporate boards by ensuring heterogeneity in terms of diversity, experience, knowledge and proficiency in conduct of board functions. Similarly, companies should appoint more independent directors to corporate boards as independent directors can contribute more towards guaranteeing the interests of shareholders. Thus, suggestions were made which is expected to provide a fruitful avenue for future research.